BT Brands, Inc. reported its 2025 fiscal results on March 30, 2026, showing a 138% jump in restaurant‑level EBITDA to $1.7 million on sales of $13.49 million, a 7.5% decline from the $14.82 million reported in 2024. The company’s operating loss narrowed to $364,585 from $1.83 million in 2024, while the net loss improved to $687,839 from $2.3 million the prior year.
Revenue fell because the company closed several under‑performing locations and faced softer comparable traffic, which offset the gains from tighter cost controls. The decline in sales is a headwind that the company is addressing through a focused portfolio strategy and a shift toward higher‑margin restaurant units.
Cost‑control initiatives drove the margin expansion: labor costs fell 5.9% and food and paper expenses dropped 5.4%, lifting the restaurant‑level EBITDA margin to 12.4% from 4.9% in 2024. These disciplined spending measures underpin the company’s improved profitability despite the revenue decline.
BT Brands continues to advance its definitive merger with Aero Velocity, Inc. The transaction will see Aero Velocity’s stockholders own approximately 89% of the combined company, while BT Brands’ existing shareholders retain about 11%. The merger will spin off the restaurant business into a separate entity, BT Group, Inc., and reposition the company as a technology platform focused on AI‑driven drone inspection services.
CEO Gary Copperud said the year marked a turning point, noting that disciplined execution and cost control have improved operating performance while the merger offers shareholders exposure to a high‑growth platform and a cash‑generating restaurant business.
The company’s liquidity remains strong, with a current ratio of 6.8, and it has not issued formal forward guidance. The improved net loss and margin expansion signal stronger operational execution, while the merger and spin‑off represent a strategic pivot that could reshape the company’s long‑term value proposition.
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